Ford Motor Co.’s share price up, to recall 1.1 million sport-utility vehicles due to sensor and electronic flaws

Ford Motor Co., the second-largest auto manufacturer in the U.S., made an official statement today, revealing that it is to recall about 1.1 million sport-utility cars in North America in order to repair sensor and electronic flaws.

The vehicle withdrawal is being made for the company to replace parts like torque sensors and steering columns or update software. In addition, almost 280 000 vehicle units are being called back for repairs associated with license-plate lamps and floor mats flaws. This brings the total amount of cars withdrawn by Ford Motor co. to date this year to almost 1.4 million units.

According to the companys statement, the 1.1 million cars of Ford Motor Co. that are to be called back include Explorers manufactured from 2011 to 2013, as well as Escape and Mercury Mariner models manufactured from 2008 to 2011. About 22.7 million vehicles were called back by the auto makers in the US to date this year. In comparison, auto manufacturers withdrew a total of 20.9 million cars last year.

As reported by the company itself in its official statement, the sensor and electronic flaws could lead to sudden loss of power steering. Almost a year ago, one of the companys spokesmen reported that the company was aware of its 2011 Explorers problems, but according to the Ford Motor Co.s letter to the regulatory authorities in the U.S., the loss of power steering “does not present an unreasonable safety risk in these vehicles”.

The recently announced recalls put Ford Motor Co. among the number of companies worldwide, which are facing hard time due to withdrawals, such as General Motors Co. that called back 1.3 million vehicles earlier this year. Toyota Motor Corp. withdrew 6.4 million cars in April 2014, and Chrysler called back 867 795 vehicle units due to potential brake flaws.

Ford Motor Co. was 1.41% up to close at 16.54 dollars per share yesterday, marking a one-year change of +5.82%. According to the information published on CNN Money, the 15 analysts offering 12-month price forecasts for Ford Motor Co. have a median target of 19.00, with a high estimate of 23.00 and a low estimate of 12.00. The median estimate represents a +14.87% increase from the last price of 16.54.